Telefonica (O2) revenue down 5.7% in 2013

Telefonica Deutschland, which provides fixed and mobile services under the brand O2, has reported consolidated revenues of EUR4.914 billion (USD6.8 billion) for the year ended 31 December 2013, a decrease of 5.7% from EUR5.213 billion in 2012. Wireless service revenues were down 5.2% year-on-year to EUR2.989 billion, while the wireline business fell 9.4% in 2013 to EUR1.235 billion, mainly resulting from a lower retail DSL base (mitigated by an increasing uptake of VDSL) and a stable evolution of retail DSLARPU, as well as a further reduction of revenues from the low margin voice transit business. The company, which is majority owned by Spanish telecoms group Telefonica, said that operating income before depreciation and amortisation (OIBDA) totalled EUR1.237 billion, compared to EUR1.279 billion in 2012, and profit for the year from continuing operations tumbled from EUR308 million to EUR78 million over the same period. CAPEX was up 9.4% from EUR609 million in 2012 to EUR666 million the following year, and was focused on supporting future growth with accelerated investments in the development of LTE in urban and suburban areas. In total, LTE network coverage exceeded 40% of the German population in 2013.

At 31 December 2013 Telefonica Deutschland reported 19.401 million mobile accesses (an increase of 0.5% from 19.300 million twelve months earlier), of which 10.286 million were post-paid, compared to 10.109 million at end-2012. Fixed broadband accesses declined 5.6% year-on-year to 2.244 million and fixed telephony accesses dropped 5.5% to 2.125 million. Wholesale accesses, meanwhile, saw growth of 3.4% in 2013 to reach 1.125 million at year-end.